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The COVID-19 pandemic has severely impacted the global economy, including India's. While the economic challenges have affected business across sectors and sizes, MSMEs have been impacted particularly hard.
A precipitous dip in demand, disruption in supply chains and a two-month-long lockdown have decimated cash reserves. To survive this crisis, 70 percent of India’s MSMEs have cut back on their workforce. Further, estimates suggest that 20-40 percent of MSMEs could permanently close down. In short, for thousands of businesses in the sector, COVID-19 has brought about an existential crisis.
The MSME sector is the growth engine of India's economy, employing nearly 11 crore people - constituting nearly 40 percent of India’s non-farm workforce. This means there is an urgent need to channelise efforts to increase the dynamism and competitiveness of MSMEs and bring together leaders across governments, industry bodies, corporations, social enterprises to discuss and deliberate on the sector's transformation.
The MSME Transformation “Dynamic India” Convening is an effort in that direction. The day-long virtual event will see participation from some of the most influential leaders from the ecosystem coming together and sharing their perspectives on what it will take for MSMEs to survive,revive,thrive, and sustain amidst the on-going pandemic.
With the convening bringing together leaders from the ecosystem will help to put the focus on the challenges of the MSME sector and different initiatives and steps needed to help the revival of the MSME sector amidst an unprecedented challenging time in recent history.
The day-long convening will offer
Titled ‘Improving Economic Dynamism and Accelerating MSME Growth’, the report provides actionable recommendations that aim to revive India’s industries, with aspecific focus on the MSME sector—a large part of our country’s economy and workforce. outlines key recommendations to strengthen MSMEs, ranging from short-term fiscal relief measures to “Survive”, to medium-to-long-term structural reforms to “Revive” the sector and help them “Thrive” and proposes an actionable operationalisation plan, along with metrics to track and measure success, so that the benefits for the MSME sector can “Sustain” over several years.
These recommendations have been developed by an “MSME Transformation Task Force"constituted by Ravi Venkatesan (Founder, GAME) and chaired by Dr. K. P. Krishnan (IAS(Retd.), Former Secretary, Government of India).
To make the recommendations pragmatic, they were shared with different stakeholdergroups including central government ministries, state governments, industry bodies,corporations, social enterprises, etc., and their thoughtful inputs have been incorporated.
To download the report, click here.
GAME is an alliance of organizations committed to creating an entrepreneurial movement in India that results in 10 million new entrepreneurs, half women, who will create 50 million livelihoods by 2030 . GAME is a non-profit operating as a project under Junior Achievement India Services. For more information: https://massentrepreneurship.org/